Model of Production with a Closed Life Cycle as a Basis for the Development of the Circular Economy in the Context of Digital Transformation

2020 ◽  
Vol 11 (1) ◽  
pp. 86-86
Author(s):  
Maria Vetrova ◽  
Dinara Ivanova
Keyword(s):  
Supply Chains ◽  
Circular Economy ◽  
Business Models ◽  
Consumption Patterns ◽  
Global Trend ◽  
Production And Consumption ◽  
Scientific Papers ◽  
Development Goals ◽  
Number Of Publications ◽  
Decision Making Model

On November 25-27, 2015, the UN General Assembly put forward 17 key sustainable development goals, one of which is Ensuring sustainable production and consumption patterns. Achieving this goal requires a review of the current dominant in many countries linear model of the economy based on the principle of "take, make, waste", with the aim of converting production and consumption patterns into closed form, where all products and materials are developed with the possibility of recycling or reuse . The global trend of digitalization has led to the possibility of efficient formation of closed supply chains and today more and more attention is being drawn to the concept of a circular economy, which has a restorative nature based on the principle of "take, make, reuse" (Pakhomova N., Richter K., Vetrova M., 2017). The number of scientific papers and best practices in the application of circular business models has been steadily increasing in recent years. If in 2016 the number of publications related to the circular economy amounted to about 400, in 2018 the number of studies grew to 1000 (Ngan S., How B., Teng S. et all., 2019). Companies around the world are actively implementing the principles of the circular economy at all stages of value creation, striving to develop closed supply chains. Keywords: circular economy, digital technology, decision-making model, closed supply chains

scholarly journals Circular Economy: Tendencies and Development Perspectives

2021 ◽  
Vol 2021 (2) ◽  
pp. 33-42
Author(s):  
Tatjana T. Tambovceva ◽  
Leonid Hr. Melnyk ◽  
Iryna B. Dehtyarova ◽  
Stanislav O. Nikolaev
Keyword(s):  
Sustainable Development ◽  
Natural Resources ◽  
Circular Economy ◽  
Sustainable Development Goals ◽  
Business Models ◽  
Modern World ◽  
Renewable Materials ◽  
Development Goals ◽  
By Products ◽  
New Jobs

The research represents the analysis of the circular economy and its essential characteristics of circular economy in the modern world. The circular economy makes it possible to "detach" the country's GDP growth from the consumption of natural resources and environmental pollution. It explains how the circular economy should stimulate sustainable development and inclusion in the system of Sustainable Development Goals. The research presents how the circular economy can ensure labor productivity, efficient environmental and energy conservation, and the creation of new jobs. It analyzes principles and tools of the circular economy. This research shows how economies should move from the current linear take, make, use, dispose practice to reuse and longer product life. It shows how current business models change and what principles are used to develop a circular economy. It examines the circular approaches based on the 3-R principle: Reduce: reduce resource use and prioritize renewable materials; Reuse: make the most of the products; Recycle: recover by-products and waste for further use in the economy. The research shows how seven key tools of the circular economy may be applied. It reveals the international experience in implementing the circular economy principles. The research describes the benefits that the transition to a circular economy brings. It analyses major circular economy barriers, such as financial, social, and technical. The research distinguishes the benefits of a circular economy. They include a decrease in costs, a cleaner and safer environment, sensitive use of natural resources, new job creation, reducing dependence on imports. This research presents the examples of Norrköping Industrial Symbiosis Network in Sweden, Latvia’s circularity business models.

Business Models in the Circular Economy and the Enabling Role of Circular Supply Chains

2018 ◽  
pp. 105-134
Author(s):  
Luciano Batista ◽  
Michael Bourlakis ◽  
Palie Smart ◽  
Roger Maull
Keyword(s):  
Supply Chains ◽  
Circular Economy ◽  
Business Models

scholarly journals Business models and supply chains for the circular economy

2018 ◽  
Vol 190 ◽  
pp. 712-721 ◽  
Author(s):  
Martin Geissdoerfer ◽  
Sandra Naomi Morioka ◽  
Marly Monteiro de Carvalho ◽  
Steve Evans
Keyword(s):  
Supply Chains ◽  
Circular Economy ◽  
Business Models

scholarly journals Problems of development of the circular economy as a factor in Russia’s sustainable development

2020 ◽  
Vol 15 (3) ◽  
pp. 155-164
Author(s):  
N. G. Gadzhiev ◽  
N. A. Murzak ◽  
A. E. Mitenkova ◽  
O. V. Skripkina ◽  
S. A. Konovalenko
Keyword(s):  
Sustainable Development ◽  
Renewable Energy ◽  
Circular Economy ◽  
Business Models ◽  
Negative Impact ◽  
Anthropogenic Pressure ◽  
Production And Consumption ◽  
Social Components ◽  
Recycled Waste ◽  
Consumption Waste

Aim. To investigate the process of formation of the circular economy in Russia within the framework of ensuring sustainable development and to identify the problems of forming a circular economy and the barriers that hinder the process of implementing business models of a circular economy in enterprises.Materials and Methods. Our study is based on systems analysis, comparative and statistical methods.Discussion. The research results have confirmed the necessity of transition to the formation a circular economy in Russia. This is despite the fact that the volume of recycled waste arising from production and consumption in Russia is growing faster than that of its generation, the actual proportion of recycling and waste disposal is growing rather slowly (somewhat more than 50%), while the proportion of the volume of production and consumption waste placed at company facilities, on average, amounted to 50% for the period analysed. Greenhouse gas emissions also have a negative impact on the environment with those of the "Economy" sector accounting for almost 79% thus determining the relevance of transition to renewable energy.Conclusion. The transition to a circular economy, in particular as a result of the use of renewable energy, will reduce the negative impact of anthropogenic pressure on the environment and ensure a balance between the environmental, economic and social components of sustainable development.

scholarly journals METHODOLOGICAL FEATURES OF ASSESSMENT OF THE LEVEL OF DEVELOPMENT OF THE CIRCULAR ECONOMY OF AN ENTERPRISE

2022 ◽  
pp. 72-80
Author(s):  
A. Stanovskaya
Keyword(s):  
Resource Use ◽  
Circular Economy ◽  
Business Models ◽  
Local Level ◽  
Advantages And Disadvantages ◽  
Production And Consumption ◽  
Efficient Resource ◽  
Analytical Review ◽  
Methodological Approaches ◽  
Global Agenda

Currently, an important item on the global agenda is the achievement of sustainable development, which is impossible without a transition to sustainable production and consumption patterns. Effective business models for ensuring more efficient resource use are offered by the concept of a circular economy (circular economy). Indicators other than those used in linear economics are needed to monitor progress in the transition to a circular economy. The article presents the results of an analytical review and comparison of the most common methodological approaches in English and Russian-speaking scientific research to assessing the circular economy at the local level. The advantages and disadvantages of these approaches, their areas of possible application are indicated. The conclusion is made about the narrowness of the interpretation of the concept of circular economy in the analyzed works and the need to develop a special tool for assessing the circular economy of an enterprise.

scholarly journals Circular economy as a part of the organizational corporate strategy

2021 ◽  
Vol 2021 (1) ◽  
pp. 183-192
Author(s):  
Marta Zlotnik ◽  
Keyword(s):  
Strategic Planning ◽  
Circular Economy ◽  
Business Models ◽  
Corporate Strategy ◽  
Planning Process ◽  
Economic Benefits ◽  
Economic Cycle ◽  
Corporate Strategies ◽  
Production And Consumption ◽  
Definition Of

In today’s environment, organizations need new corporate strategies and models to protect profitability and competitiveness, as well as the heritage of natural resources. A circular economy is a model of production and consumption in which all resources and products are reused in the economic cycle, which can significantly reduce waste generation and create additional economic benefits for business. This is especially important in the context of the recovery from the economic crisis caused by the COVID-19 pandemic. Implemented quarantine restrictions have revealed how sensitive to global risks and inflexible the linear economic system is. The purpose of this study is to identify and analyze ways to implement circular economy models in the corporate strategy of the organization. The objectives of the article are to study the latest publications on the definition of circular economy, corporate strategy and their relationship, description of the strategic planning process taking into account the models of circular economy, identification of basic business models of circular economy, analysis of examples of implementation of circular models conclusions. To achieve the goal of the study, the authors’ different approaches to the interpretation of the concept of “corporate strategy” and its formation within the circular economy were analyzed, the process of strategic planning was highlighted and the main types of values created by the circular economy were identified. The key circular business models and their relationship with the corporate strategy of the organization are highlighted. The main part of the article analyzes examples of implementation of the concept of circular economy in the corporate strategies of four selected Italian companies in various industries. A comparative description of the roles of the circular economy in the corporate strategy of each company and the benefits gained in the process of its implementation was carried out. Conclusions were drawn on the importance of implementing the ideas of the circular economy at the stage of forming the strategy of the enterprise to achieve economic, environmental and social benefits.

scholarly journals Characteristics of textile and clothing sector social entrepreneurs in the transition to the circular economy

2021 ◽  
Vol 72 (01) ◽  
pp. 81-88
Author(s):  
DANIELA STAICU
Keyword(s):  
Value Chain ◽  
Circular Economy ◽  
Paradigm Shift ◽  
Business Models ◽  
Clothing Industry ◽  
Social Entrepreneurs ◽  
The Real ◽  
Production And Consumption ◽  
Agents Of Change ◽  
Structured Questionnaire

The limits of the present take-make-waste business model are extremely visible when examining the textile and clothing industry. The concept of circular economy gained traction, which has led to the creation of policy actions throughout the life cycle of a product and at disposal. Transitioning from linear to circular economy business models requires significant value-chain changes in both production and consumption patterns. Existing circular business models are paving the way towards a paradigm shift. However, the literature has not retained much empirical evidence about these sustainabilityoriented innovators which are invisible and work in anonymity. This study provides a simple, yet rich and unique overview of the characteristics of circular economy business models in the textile and clothing sector in Romania, identified through qualitative analysis performed on the entire population of sustainability-oriented innovators identified in Romania in the textile and clothing sector in a previous study done by the same author. The data was collected using a structured questionnaire with 37 questions connected to four areas: human resources, legal and fiscal framework, customers and communication, and materials, tools or technology employed. With a 100% response rate, the real significance of this paper is that it may have discovered the real contribution of these agents of change in the circular economy, functional circular business models which have never been studied before as a population.

scholarly journals Eco-innovation and Circular Business Models as drivers for a circular economy

2018 ◽  
Vol 64 (1) ◽  
pp. 64 ◽  
Author(s):  
Xavier Vence ◽  
Ángeles Pereira
Keyword(s):  
Supply Chains ◽  
Business Model ◽  
Circular Economy ◽  
Business Models ◽  
Holistic Approach ◽  
Short Supply ◽  
Doing Business ◽  
Smart Energy Systems ◽  
The Way

<p>Eco-innovation is defined as any directed/oriented innovation aiming at reducing environmental impacts. Eco-innovation is not only a technology change; it also embraces organisational, social and system innovations. This systemic and complex thinking is necessary to understand the role of eco-innovation as an enabler of Circular Economy (CE). Circular Economy appears as a promising approach towards a sustainable transition from the linear socioeconomic paradigm. The objective of the Circular Economy is to maintain and to share value along the time. Eco-innovation for Circular Economy can be of technological and non-technological character. Indeed, it is acknowledged that CE needs to address important challenges regarding business models and socio-institutional frameworks, while technological change may not be necessarily radical. In order to pave the way to Circular Economy through eco-innovation, business models are considered a key driver. The business model is seen as a holistic approach towards the way of doing business. From the eco-innovation perspective, a business model needs to add ecological and social value to the value proposal and changing the producer and the consumer practices. In particular, eco-innovations with the potential to enable the transition to a resource-efficient circular economy model include efforts to change dominant business models (from new product and service design to reconfigured value chains, new/short supply chains), transform the way citizens interact with products and services (ownership, leasing, sharing, repairing, reducing, remanufacturing, etc.) and develop improved systems for delivering value (green mobility, smart energy systems, short supply chains,  etc.).<strong></strong></p>

scholarly journals Circular patterns of waste prevention and recovery

2019 ◽  
Vol 119 ◽  
pp. 00003 ◽  
Author(s):  
Patrizia Ghisellini ◽  
Remo Santagata ◽  
Amalia Zucaro ◽  
Sergio Ulgiat
Keyword(s):  
Economic Growth ◽  
Circular Economy ◽  
Business Models ◽  
Natural Capital ◽  
Rebound Effect ◽  
Radical Change ◽  
Social Dimension ◽  
Urban Systems ◽  
World Population ◽  
Production And Consumption

The growth of modern societies with their scientific, economic and social achievements was made possible by the cheap availability of fossil fuels. Side effects of fossil energy resources were the development of unsustainable production and consumption patterns, the degradation of natural capital, and the release of airborne, waterborne and solid waste. Consumption and environmental loading are not only related to fuels, but also to other material resources, such as minerals in general and rare earths in particular. The increasing shortage of crucial resources affects and constrains important economic sectors (e.g., electronic sectors, renewable energies, food production), thus placing a limit on further development and wellbeing. Concepts of sustainable economies and communities, with focus on the social dimension of development and also on the ecological and economic aspects at the same time, are gaining the attention of policy makers, managers, and investors, as well as local stakeholders (organisations, small and medium enterprises, individual citizens) and encouraging new development and business models globally referred to as the “circular economy”. The circular economy (CE) is a production and consumption system that is restorative by intention and design. Although there has been a relative decoupling of economic growth from resource use in recent decades, the gains made so far have been eaten up by a combination of economic growth and the rebound effect. There are two questions: (i) why has it been so hard to move from theory(most often from rhetoric) to practice and implementation, and (ii) how is it possible to promote an innovative and effective CE strategy in urban systems where 60% of world population is concentrated. This shift (design, networking, organisation, implementation, community planning) and related monitoring tools constitute the skeletonof the transition that needs to occur within both urban systems and economies. The point we make is that a society without waste is not only desirable, but also possible and necessary. We cannot wait longer and we cannot just accept small adjustments, increased end-of-pipe technologies and the usual interplay of promises and conflicts. The time for a massive and successful effort towards a radical change of lifestyles and production/consumptionpatterns is now, where the term "waste" itself is considered a symptom of societal illness, an indicator of immature economies, poor science and old-fashioned technology.

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